Kezar Announces Inducement Grant Under NASDAQ Listing Rule 5635(c)(4)

Rhea-AI Summary

Kezar Life Sciences (Nasdaq: KZR) has announced the granting of a nonqualified stock option to a new employee as an inducement award under Nasdaq Listing Rule 5635(c)(4). The option allows the purchase of 72,000 shares at $0.55 per share, matching the closing price on July 8, 2024. The award aims to attract the individual to join Kezar. The stock options will vest over four years: 25% on the first anniversary of the employee’s start date, and 1/48th monthly thereafter, conditional on continued employment. The grant is governed by Kezar’s 2022 Inducement Plan and specific stock option agreement.

Positive

• Granting of 72,000 stock options as an inducement award may attract high-caliber talent to Kezar.
• Stock option exercise price is set at $0.55 per share, the closing price on the grant date, showing a fair market value.

Negative

• The granting of stock options may lead to future share dilution for existing shareholders.

SOUTH SAN FRANCISCO, Calif.--(BUSINESS WIRE)-- Kezar Life Sciences, Inc. (Nasdaq: KZR), a clinical-stage biotechnology company developing novel small molecule therapeutics to treat unmet needs in immune-mediated diseases and cancer, today announced that the Compensation Committee of the company’s Board of Directors granted one employee a nonqualified stock option to purchase 72,000 shares of its common stock with an exercise price of $0.55 per share, which is equal to the closing price of Kezar’s common stock on July 8, 2024, the grant date of the award. The stock option was granted as an inducement award material to the individual entering into employment with Kezar, in accordance with Nasdaq Listing Rule 5635(c)(4).

The stock option will vest over a four-year period, with 25% of each option vesting on the first anniversary of the employee’s start date, and 1/48th of the total shares vesting monthly thereafter, subject to continued employment on each vesting date. The option is subject to the terms and conditions of Kezar’s 2022 Inducement Plan and the stock option agreement covering the grant.

About Kezar Life Sciences

Kezar Life Sciences is a clinical-stage biopharmaceutical company developing novel small molecule therapeutics to treat unmet needs in immune-mediated diseases and cancer. Zetomipzomib, a selective immunoproteasome inhibitor, is currently being evaluated in a Phase 2b clinical trial for lupus nephritis and a Phase 2a clinical trial for autoimmune hepatitis. This product candidate also has the potential to address multiple chronic immune-mediated diseases. Kezar’s oncology product candidate, KZR-261, targeting the Sec61 translocon and protein secretion pathway, is being evaluated in an open-label dose-escalation Phase 1 clinical trial to assess safety, tolerability and preliminary tumor activity in solid tumors. For more information, visit www.kezarlifesciences.com, and follow us on LinkedIn, Facebook, Twitter and Instagram.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240710548697/en/

Investor and Media Contact:

Gitanjali Jain

Vice President, Investor Relations and External Affairs

Kezar Life Sciences, Inc.

gjain@kezarbio.com

Source: Kezar Life Sciences, Inc.

FAQ

What is the exercise price for Kezar's recently granted stock options (KZR)?

The exercise price for the recently granted stock options is $0.55 per share, the closing price on July 8, 2024.

How many shares are included in Kezar's inducement stock option grant?

The inducement stock option grant includes 72,000 shares.

When was Kezar's inducement stock option grant issued?

Kezar's inducement stock option grant was issued on July 8, 2024.

What are the vesting terms for Kezar's inducement stock option grant?

The stock options will vest over four years: 25% on the first anniversary and 1/48th monthly thereafter.

Under which NASDAQ rule was Kezar's inducement stock option granted?

The inducement stock option was granted under NASDAQ Listing Rule 5635(c)(4).